Australian outlook strong

Analysts at Deutsche Bank expect the Australian business investment outlook to remain strong. The broker analysed the Australian Bureau of Statistics quarterly Private Capital Expenditure survey, which questions companies about their expectations for future capital expenditure. The most recent survey in June showed the amount of engineering capex work in the pipeline eased in the quarter, which Deutsche said was not surprising given the mining tax uncertainty that hung over the market. But the level of work to be done is still at very high levels regardless, and as future projects are committed these numbers will rise further. The analysts recommended investors looking for exposure to this story should pay attention to companies such as
Leighton
Holdings,
Boart Longyear
and
Adelaide Brighton
.